FINRA Believes Blockchain Could Impact its Regulatory Rules
FINRA believes the widespread use of blockchain could come to impact its core business practices. The self-regulatory organization for US brokers published a new report on blockchain tech yesterday that offers both a broad overview of the tech from the context of its industry, as well as its take on its potential impact on the brokerage sector. FINRA has been open about its work on the technology (in conjunction with its members) in the past, though the release constitutes some of its most direct comments to date. Most notably, FINRA said that, should the tech see broader use in the....
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The Financial Industry Regulatory Authority released a report on blockchain’s impact on the securities industry in its efforts to support financial institutions investing in the technology. Many FINRA rules, as well rules by other regulators such as the Securities and Exchange Commission, are potentially implicated by various distributed ledger technology (DLT) applications, the report noted. A DLT application that alters clearing arrangements or serves as a source of recordkeeping by broker-dealers could implicate FINRA rules for carrying agreements and records requirements. FINRA seeks....
Several members of the Congressional Blockchain Caucus are calling for more clarity on broker-dealer rules from the U.S. securities regulator. Nine members of congress have written a letter asking the Securities and Exchange Commission to get its security token guidance straightened out.In a Dec. 9 letter to SEC Chairman Jay Clayton, several members of the Congressional Blockchain Caucus led by Tom Emmer (R-MN) asked the commission to verify rules as to which broker-dealers can custody digital securities. Broker-dealer licensing is required to sell securities in the U.S. The letter also....
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